Financial Crime World

Financial Fraud Soars in New Zealand: Statistics Reveal Alarming Trend

New statistics have revealed a staggering 256% increase in the total value of reported fraud year-on-year, with seven “super frauds” worth over $1 million reported this year alone.

Rise in Financial Fraud in New Zealand

The alarming trend has raised concerns among financial experts, who warn that organisations must take proactive measures to prevent and detect fraud. According to recent data, a major $80 million fraud case, which had been ongoing since 2012, was finally reported this year, contributing significantly to the overall increase in fraud value.

Investigation and Prosecution of COVID-19 Wage Subsidy Cases

The Serious Fraud Office is investigating and prosecuting COVID-19 wage subsidy cases, which are expected to feature prominently in the next review period as convictions start to be handed down. This development has raised concerns about the potential impact on businesses and individuals who may have been affected by fraudulent activity.

Importance of Proactive Measures

Financial experts warn that organisations must take proactive measures to prevent and detect fraud. KPMG’s Forensic team offers a range of services to support businesses in this regard, including:

  • Fraud Maturity Assessments: Evaluating an organisation’s existing fraud controls and providing recommendations for improvement.
  • Risk Assessments: Identifying potential fraud risks and developing strategies to mitigate them.
  • Confidential Whistleblowing Hotlines: Providing a safe and secure channel for employees or stakeholders to report suspected fraudulent activity.
  • Independent Investigations: Conducting thorough investigations into alleged fraud cases.

Expert Advice

“The statistics are clear - fraud is on the rise in New Zealand,” said a spokesperson for KPMG. “It’s essential that organisations take proactive steps to protect themselves against these threats. Our team can provide expert support to help detect, prevent, and respond to fraud risks.”

Staying Vigilant

With financial fraud becoming an increasingly significant concern, businesses and individuals alike are being urged to remain vigilant and take action to safeguard their assets. By taking proactive measures to prevent and detect fraud, organisations can reduce the risk of falling victim to financial fraud and protect their reputation and finances.